FY 2009 Income Limits Documentation System

Median Family Income Calculation Methodology

FY 2009 estimates take advantage of the 2007 American Community Survey (ACS) 3-year data published by the Bureau of the Census. While HUD's FY2009 median family income (MFI) estimates are still updates of 2000 Census data, the 2009 HUD update factors are similar to the methodology employeed to generate FY2008 update factors; however, FY 2009 estimates use 3 year ACS data because more areas are covered by the 3 year estiamtes. In general:

HUD's FY 2009 MFI estimates make more extensive use of ACS data than previous years. All estiamtes are projected forward from 2007 to April 1, 2009, using an annual trend factor of 3.0 percent. Except for minor modifications, HUD continues to use the same area definitions used in FY2006.

Overall there are increases in estimated HUD family incomes between 2008 and 2009. Lastly, since the ACS responses where delivered between 2005 and 2007, the impact of the recession which began in 2008 on family incomes is not measured by these data.

Due to it's size, Orlando-Kissimmee, FL MSA does not have published local area 3 year 2007 ACS Survey results.

The step-by-step procedures used to develop FY 2009 estimates for Orlando-Kissimmee, FL MSA are as follows:

  1. The 2000 Census was used to estimate what are treated as mid-1999 local median family income estimates.

  2. Census 2000 and 2007 American Community Surveys were used to estimate the change in State MFIs for the mid-1999 to end-2007 period. The state income changes for 1999-2007 period were calculated as follows:

    ACS State MFI 2007

    Census State MFI 1999
    =
    8-Year Increase factor for

    ACS Median Family Income
    =ACS State Income Change

    NOTE: For areas not covered by local ACS income estimates, trending for the post-2000 period through the year of the most current ACS data available (2007) was done using changes in ACS state MFI estimates. Therefore, in the FY 2009 HUD MFI estimates, HUD is using direct comparisons between the state estimates from the 2000 Census and the 2007 ACS to calculate state-level changes.

  3. Convert the step 1 median family income estimate to an April 1, 2009 estimate as follows:

    Step 1 median family income
    * Step 2 Local Update Factor
    * 1.03 (3.0% annual trending) 1.25 years
    = FY 2009 Median Family Income estimate

Although HUD is revising its median family income estimates to use the new ACS data, it is continuing its hold-harmless policy with respect to income limits. That is, HUD will continue to set income limits at the higher of normal income limit calculations or at the previous year's income limits.


The results of the Median Family Income Step by Step Process

Orlando-Kissimmee, FL MSA Results

  1. The following are the 2000 Census Median Incomes (as of 1999) for:

    Area 2000 Census Median Income
    Orlando-Kissimmee, FL MSA $47,760

  2. The state-level income change from mid-1999 to end-2007 is calculated as follows:
    Area ACS State MFI2007 Year End 2007 Update Factor Census State MFI1999 Result
    Orlando-Kissimmee, FL MSA $55,534 (211.680 / 207.342)
    =
    1.0209
    $45,625 ($55,534*1.0209) / $45,625
    =
    / $45,625
    =
    1.24265
    =
    24.265%

  3. The FY 2009 median family incom is estimated as follows:
    Area Step 1 Step 2
    Local Update Factor
    Trending
    3.0% for 1.25 years
    FY2009
    Area MFI Estimate
    Orlando-Kissimmee, FL MSA 47,760 1.2427 1.031.25
    =
    1.03764
    (47,760 * 1.2427 * 1.03764)
    =
    61,582.96

  4. In keeping with HUD policy, the MFI Estimate is rounded to the nearest $100:
    Area Unrounded
    FY 2009 MFI Estimate
    Rounded
    FY 2009 MFI Estimate
    Orlando-Kissimmee, FL MSA $61,582.96 $61,600
    NOTE: Due to differences in the computing platforms used to generate the official FY 2009 MFI estimates, and this web system, the calculated value of 61,600 is different that the official value of 60,700 because of rounding.


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